US Judge Proposes CITGO Auction Solution

Source: Reuters / Marianna Parraga
Wednesday, November 20, 2024

The U.S. judge overseeing an auction of shares in a Citgo Petroleum parent to pay Venezuela-linked creditors on Wednesday proposed major procedural changes to advance a case stalled by wide opposition and lawsuits by creditors in other courts.

Judge Leonard Stark recommended a series of changes to encourage higher bids in a seven-year-long court case brought by companies pursuing up to $21.3 billion in claims for debt defaults and expropriations in Venezuela.

An up to $7.3 billion bid by an affiliate of activist investor Elliott Investment Management could soon be challenged by the court's recommendation to choose a "starting point bidder" to move forward with the auction. Most parties in the case have objected to Elliott's offer, prompting the judge to develop the new terms.

Stark proposed to reopen a Citgo data room for potential bidders to prepare their offers, grant all parties in the case access to terms, offer termination protections to all possible bidders, and give enough time for competitors to raise bids.

The court said it wanted to continue with the revised sales process while some creditors' lawsuits brought in other courts continue. Several had filed in New York and Texas seeking to improve their chances of obtaining proceeds from the auction.

Categories: Legal Energy LNG People Offshore Energy Drilling Industry News Legal Beat Government & Regulations Oil Refining

Related Stories

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

Shell Secures Drilling Permit off South Africa's West Coast

Shell Secures Drilling Permit off South Africa's West Coast

COSLInnovator Rig Cleared for Two-Well Drilling Op in North Sea

COSLInnovator Rig Cleared for Two-Well Drilling Op in North Sea

Current News

Iberdrola Picks Up $4.9B to Finance 1.4GW UK Offshore Wind Farm

Perenco Brings Woodside’s Trinidad Oil and Gas Assets Into Its Fold

Vallourec Brings CNOOC, Petrochina as New Clients in Iraq

Germany’s SEFE Inks Three-Year LNG Supply Deal with ADNOC

Subscribe for OE Digital E‑News

Offshore Engineer Magazine